World News – US – Salesforce Deal For Slack Expected To Be Announced Tuesday: Report

Clearances from Slack Technologies (WORK) work intelligence service – Get Report jumped Monday morning after a report that a deal to acquire the company by Salesforce could be announced as early as Tuesday after market close.

CNBC reported that the deal is expected to be half cash and half stock, valuing Slack at a premium to current price. Slack stocks rose 4. 4% up to $ 42. 45 on the news, with its previous closing price, the company was giving $ 23. 2 billion valuation. Salesforce stocks declined 3. 7% on $ 238. 90 on Monday.

Last Wednesday, Slack’s shares rose more than 7% after the company was reportedly approached about a takeover by Salesforce (CRM) – Get Report.

Any deal would value Slack based on its current market cap, the Wall Street Journal reported. This would be the largest acquisition by Salesforce to date.

Salesforce previously paid $ 6. 5 billion for MuleSoft in 2018 and $ 15. 3 billion for data visualization company Tableau in 2019.

Slack stocks fell on the Monday leading up to the IPO after Barclays analysts downgraded the stock from overweight to equilibrium on valuation concerns, despite the company maintaining its target price of $ 36 for the company.

Analyst Raimo Lenschow said Barclays now sees limited uptrend for Slacks shares while considering « the risk of a significant downtrend in the event a bid does not materialize » given the « healthy valuation level » of the stocks.

Wedbush analysts released an industry report Monday morning following the CNBC report saying, « This would be an aggressive move for [Salesforce CEO Marc] Benioff & Co. . To further expand the cloud enterprise product offering, the focus was on further penetrating the golden installed base with the largest acquisition ($ 20 billion) when Slack is ultimately acquired tomorrow. « 

Analyst Dan Ives noted that, having seen MuleSoft and Tableau, observers have a high level of confidence in Salesforce’s ability to successfully integrate Slack, despite describing the equity component of the business as a « double-edged sword ». « 

Ives added that « this deal would be a huge success at Microsoft as the company’s teams would offer a direct messaging competitor to Slack, which is a clear hurdle to growth and is now a two-horse race. » between Microsoft and Salesforce would be. « 

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Salesforce, Stock, Slack Technologies, Customer Relationship Management, Cloud Computing